The rationale offered by the providers like CrossWay Group is compelling. A company can solve all of the problems of running an application. Outsourcing your staffing needs targets high software ownership and maintenance costs; simplifies and/or eliminates the traditional difficulties in implementation; and avoids the problems of hiring and retaining IT staff to run the applications.

But potential exists beyond a mere cost-cutting measure. Outsourcing can be a strategic, competitive move. For example, outsourcing the ERP function offers a faster time to solution and removes a major distraction from a company's core competence. Access to these services also can help companies initiate electronic-business strategies in a shorter time frame with less capital expense.

The service already is up and running at Sebastiani Vineyards Inc., Sonoma, Calif. "By outsourcing our ERP technical environment through EDS and benefiting from the use of SAP R/3, we can direct our time and energy toward improving our core business processes," says Jeff Perkins, director of information services